You may have received a Notice to Deliver a Company Tax Return for a Dormant Company. But in these cases you can actually avoid having to file a tax return for your Dormant Company.

Why Has HMRC Requested a Tax Return for Your Dormant Company?

If you have newly formed a Company but never traded through it you will probably receive a Notice to Deliver a Company Tax Return from HMRC.  This is because when you register a new Company at Companies House, HMRCs default position is that all new registered Companies are trading and so need to file a Corporation Tax Return.

If you have a registered company which traded previously and now is dormant, then HMRC will continue to send you a Notice to Deliver a Company Tax Return because they assume that you have continued to trade as normal.

In both cases you can avoid having to file a tax return for a Dormant Company by getting in touch with HMRC and you must go through the right process otherwise HMRC will begin to issue automatic penalties starting at £100 and escalating thereafter the longer you leave it.

What is a Dormant Company

How to Notify HMRC of Dormant Company Status

HMRC can be notified of Dormant Company Status by post, although you should always confirm that your Company meets the HMRC Definition of Dormant Company Status before doing this.

Firstly, you’ll need to Complete Your Dormant Company Accounts and file them with Companies House. Once these are accepted at Companies House you can then write to HMRC, enclosing evidence of Dormant Status.  HMRC will then update their systems and you will no longer receive a Notice to Deliver a Company Tax Return (CT603) each year, as they will understand that this form is not required.  Send your letter to HMRC to this address:

HMRC

CT Services

Corporation Tax Services

HM Revenue and Customs

BX9 1AX

Always include the Company Name and Unique Tax Payers Reference (UTR) on your letter and ensure it is signed by a Director of the Company.  You can find your Company’s UTR number at the top of any correspondence you have from HMRC or within your HMRC Business Online Account, under the heading ‘Corporation Tax’.

Step by Step Guide to Filing Your Dormant Accounts Online

My step by step guide walks you through the process of filing you dormant accounts online with Companies House, including screen shots of an example Dormant Company set of Accounts.  In addition, the guide includes a letter template for you to use so you can notify HMRC of Dormant Company Status.

If You Have Lost Your Dormant Company UTR

If you have lost your Company UTR then you will need to call HMRC on 0300 2003410 to retrieve it. You must be a Company Director to make this phone call and they will ask various security questions, including your Registered Office address. You should note that due to the confidential nature of this code HMRC are unable to issue a lost UTR number over the phone.

If Your Dormant Company Starts to Trade

If you do start to trade then it is your responsibility to notify HMRC that you have done so and need to file Corporation Tax Returns and pay corporation tax.  You can do this by letter, writing to the above address, by phone (0300 2003410) or by signing up online with HMRC for a business account so you can view your taxes online.

What is a Dormant Company

Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.